Bitcoin just shot up above $50,000 in the last couple of days and “Bitcoin-ers” are beyond stoked. Yesterday, I talked about the possibility of that famous form of cryptocurrency reaching at least $100,000 by the end of the year 2021.
However, since Bitcoin’s launch in 2009, thousands of new cryptocurrencies have burst onto the scene. Some of them, like Ethereum, have actually been quite successful, while others… well, you’ve likely never heard of most of them. Bitcoin stands out against the rest because of its insane amount of growth. This is the digital currency that made “cryptocurrency” a household name.
Emin Gün Sirer, the CEO of Ava Labs that created the Avalanche network, said: “If you ask me what’s going to happen to bitcoin it’s going to continue to grow, but the rate at which it grows is going to be eclipsed by these systems that have a broader vision.”
Needless to say, Sirer believes that Bitcoin will eventually be surpassed by other cryptocurrencies, rendering the pioneering digital currency obsolete.
Bitcoin, as the first-to-market name, is certainly at risk for being usurped. We’ve seen it time and time again. Google was not the first search engine, but it certainly took over. There are a lot of high hopes for Bitcoin’s future (as I discussed earlier), so there is no guarantee that Bitcoin is going away at all.
Another argument is that the U.S. Treasury Department pushing for a centralized “stablecoin” could ultimately knock Bitcoin out of its number one spot. Stablecoin could potentially replace decentralized digital currency altogether, many investors believe. The problem is that Bitcoin is incredibly volatile. We’ve seen it rise to $63,000, drop to $30,000, and then up to $55,000 (with potential of reaching $100,000) all in one year.
Binance, for example, is linked directly to the U.S. dollar, making it a much, much safer bet in terms of digital currency.
Obviously, there is no guarantee one way or another. The fact is that cryptocurrency is very volatile and, frankly, quite unpredictable. There are a lot of conflicting ideas of what the future holds for Bitcoin, so I’ll pass the question onto you guys.
What do you think?